In order to fully understand the role of an affiliate, it is important to first define what the term means. The broad definition of affiliate is a person or organisation officially attached to a larger body, or company.
In relation to the forex market, an affiliate is a person who refers potential traders or directs traffic to an external broker’s website or trading platform. As an affiliate, you do not necessarily need to know everything about foreign exchange, nor do you need to meet clients in person. It is entirely possible to succeed as an affiliate with a high-traffic blog or website, or a high social media presence, such as Twitter or Instagram followers.
Forex affiliates play an important role in the functioning of the forex trading markets, as they facilitate the relationship between both the traders and the forex brokers.
Key affiliate factors to consider
Before becoming a forex affiliate, a good deal of preparation is required prior to stepping into the competitive environment of the forex market. By being a prepared informed affiliate before partnering with a broker, you will ensure that you give yourself the best opportunity to succeed going forward.
Outlined below are a few pointers that will offer an insight into some of the key factors to be considered, prior to becoming a forex affiliate.
- Broker research
The first step to take prior to embarking on your affiliate journey is to select a broker that suits you. It is important that you choose to affiliate with a broker that you feel you can work productively with. Check the credentials of the various brokers, including the terms offered for affiliates and the type of partnership programs they offer.
- Commission structure
As part of conducting due diligence on a broker before choosing to partner with them, a crucial detail to understand is how you will be paid as an affiliate. Forex affiliate schemes usually offer several pay-out methods, including cost per acquisition (CPA), revenue share and lot rebate models. Make sure that you understand what the rates are, when you will be paid, and also the conversion rates offered by the broker.
- Marketing tools
Define what the relationship will be between you as the affiliate and the broker, in terms of how you will be promoting their brand and the way you will be using their trademarks. Brokers differ regarding the level of input they choose to have on marketing campaigns. Check the terms and conditions, particularly on SEC, SEO/PPC and emailing marketing – know what you can and cannot do, before entering into a partnership.
5 key tips to affiliate success
Becoming a successful broker is not an easy task, while the nature of the forex affiliate marketplace can initially appear to be a daunting task. But this does not have to be the case – check out our handy tips to forex affiliate success.
- Partner with a reputable broker
- Choose an affiliate program that offers full support
- Partner with an innovative broker
- Understand who you are targeting
- Make full use of social media as a tool
By taking note and following the above tips, you will give yourself a good chance of succeeding as an effective and successful forex affiliate. Remember, an informed affiliate is a better affiliate.
Disclaimer: This information is not considered as investment advice or an investment recommendation, but is instead a marketing communication